2.3 Using additional themes or criteria to add value

Community benefits can provide opportunities to lever in “matched funding” from other sources dependent on the type of project in question. Therefore, to ensure the community fund achieves the greatest impact, it should not displace such monies nor, ideally, should its availability reduce community groups’ commitment to generating their own funds from local fundraising.

For example, local events that also contribute to a vibrant community calendar and promote community spirit. So, while community funds can usually offer up to 100% of project costs, it may still be important to ask groups to demonstrate that other funding sources for their project have been explored and perhaps indicate that, where competition for funding is high, those proposals sourcing a percentage of the total project cost from elsewhere are more likely to be funded. This might mean applicants raising some funds through their own events or online fundraising, charging for services or products, or securing grants from other sources.

Where a group is seeking funding for a project or activity that will continue beyond the life of the grant, it is prudent to ask how they see that ongoing activity being funded. Do they have a plan for it to become sustainable in the future without the need to rely on further grant funding? And is it realistic? Might they enter into an agreement (for example with local businesses or the local authority) to continue providing services, or bring in funding through other kinds of trading? If they are asking for a lot of money from the Fund, this becomes even more important. Many communities will wish to avoid their funds being used to support groups that will simply come back to ask for more funds year-on-year to keep running the same activity or service. To do so could either reduce the Fund’s ability to support new ideas and opportunities or, if ongoing funding is not provided, place the Fund (and the group that makes decisions on what is funded) in an unfair position of perceived responsibility for the closure of a project or service that the Fund has supported at some point previously. However, in some cases, communities may be happy to support the same activity annually, for example, where this brings clear benefits for a broad cross section of the community or a particularly disadvantaged group.

Community benefits can play a role in ensuring local projects meet their wider environmental responsibilities and some may even become exemplar projects in this regard. Those seeking funds can be encouraged or required to consider the environmental impact of the project or activity for which they are seeking funding (and perhaps of their organisation’s activities generally) and demonstrate how they will address this. This might include asking them to:

• Provide an environmental policy adopted by the organisation
• Explore opportunities for the provision of environmental education through the project
• Share, re-use or re-cycle resources
• Minimise consumption of non-renewable materials, including energy and fuel, for example by encouraging cycling or walking, or installing insulation in a community facility.

Where the proposal is for funds towards the costs of a new building or refurbishment of an existing building, this should be based on sustainable design principles, considering carbon costs across the full lifecycle of the building, energy efficiency, use of environmentally benign materials and on-site renewable energy generation.

Opportunities to support the local economy should be maximised, increasing the local benefit from the Fund by retaining spend in the area. Those requesting funding could be required to explore potential local suppliers and favour those for the provision of goods and services, where appropriate (e.g. in terms of quality of products / services available) and feasible (in terms of availability and cost). The term ‘local’ will vary depending on the nature and availability of the goods or service in question. In some cases, it could be taken to mean within the Fund’s area of benefit, but in others, the wider area or region might be most appropriate. However, a balance is of course required, and it should be incumbent on groups applying for funds to demonstrate value for money in their procurement of services and goods; if local suppliers are a good bit more expensive than others with no reasonable justification, then clearly, they may not be favoured.

Most projects can, with some creative thinking, provide opportunities to tap into and build on the skills, interests and knowledge of local people and groups. Those seeking funding could be encouraged to consider (or required to demonstrate) how their proposed project will increase the involvement of local people around their skills and interests, build on these, and enable them to make a meaningful contribution to their community, whether this is anticipated as a key outcome for the project or not. This might involve: Providing opportunities for people to volunteer and/or showcase their skills, encouraging and supporting them to develop their own community activities and projects, transfer of skills and knowledge through shadowing, mentoring or coaching, or partnerships between experienced organisations (including external agencies) and less experienced groups. An example of this kind of activity is Ochil Youth Communities Initiative (OYCI), a youth development project where the young people themselves research, select, plan, deliver and evaluate activities with their peers. The young people involved have become empowered to take forward more of their own activities each year. Further information on this type of asset-based approach to community development is provided in the module Understanding the Community Context.

The development of partnerships or greater collaboration between local groups, or between those groups and external agencies, can help to bring added value for money. Those requesting funds could be encouraged to consider whether working with others could bring a more efficient and impactful way of delivering their project or service – for example, increasing its reach, building the capabilities of the group, or improving overall financial efficiency – and demonstrate how they have explored this. This could involve working with voluntary, private or public sector bodies that operate at local, regional or national level. Kyle of Sutherland Development Trust is an example of this, delivering a range of local regeneration projects with community benefit funding in partnership with The Highland Council, Highlands and Islands Enterprise, local businesses and others.